Fair Drug Prices for Kids Act

I 116TH CONGRESS 2D SESSION H. R. 8546 To amend titles XIX and XXI of the Social Security Act to give States the option to extend the Medicaid drug rebate program to the Children’s Health Insurance Program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 6, 2020 Ms. WILD (for herself, Mr. FITZPATRICK, Mr. SAN NICOLAS, Mr. VELA, Ms. SCANLON, Ms. DEAN, Mrs. HAYES, Mr. CUELLAR, Mr. EVANS, Mr. THOMPSON of Mississippi, Mr. CARTWRIGHT, and Mr. GRIJALVA) intro- duced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend titles XIX and XXI of the Social Security Act to give States the option to extend the Medicaid drug rebate program to the Children’s Health Insurance Pro- gram, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fair Drug Prices for 4 Kids Act’’. 5 VerDate Sep 11 2014 00:36 Oct 30, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8546.IH H8546 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8546 IH SEC. 2. REDUCING PRESCRIPTION DRUG COSTS FOR CHIL- 1 DREN’S MEDICINE. 2 (a) IN GENERAL.—Section 1927(a) of the Social Se- 3 curity Act (42 U.S.C. 1396r–8)(a) is amended by adding 4 at the end the following new paragraph: 5 ‘‘(8) STATE OPTION TO APPLY REBATE RE- 6 QUIREMENTS TO THE STATE CHILD HEALTH 7 PLAN.— 8 ‘‘(A) IN GENERAL.—A State may elect to 9 apply the requirements of this section and regu- 10 lations promulgated to carry out this section to 11 covered outpatient drugs for which payment is 12 available under the State child health plan 13 under title XXI in the same manner as such re- 14 quirements apply to the State plan under this 15 title, subject to such guidance as the Secretary 16 shall establish. 17 ‘‘(B) APPLICATION RULES.—If a State 18 makes an election under subparagraph (A), 19 then, in applying this section with respect to 20 that State— 21 ‘‘(i) paragraph (1) of this subsection 22 shall be applied as if ‘or section 2105 (if 23 the State has elected to apply this section 24 to the State child health plan under title 25 XXI)’ were inserted after ‘1903(a)’; 26 VerDate Sep 11 2014 00:36 Oct 30, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8546.IH H8546 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8546 IH ‘‘(ii) paragraph (7)(A) of this sub- 1 section shall be applied— 2 ‘‘(I) as if ‘or section 2105 (if the 3 State has elected to apply this section 4 to the State child health plan under 5 title XXI)’ were inserted after 6 ‘1903(a)’; and 7 ‘‘(II) as if ‘(or, if the State has 8 elected to apply this section to the 9 State child health plan under title 10 XXI, on or after the date this section 11 first applies to the State)’ were in- 12 serted after ‘January 1, 2006’; 13 ‘‘(iii) paragraph (7)(B)(ii) of this sub- 14 section shall be applied— 15 ‘‘(I) as if ‘or section 2105 (if the 16 State has elected to apply this section 17 to the State child health plan under 18 title XXI)’ were inserted after 19 ‘1903(a)’; and 20 ‘‘(II) as if ‘(or, if the State has 21 elected to apply this section to the 22 State child health plan under title 23 XXI, on or after the date this section 24 VerDate Sep 11 2014 00:36 Oct 30, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8546.IH H8546 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8546 IH first applies to the State)’ were in- 1 serted after ‘January 1, 2008’; 2 ‘‘(iv) subsection (b)(1)(A) shall be ap- 3 plied as if ‘(or, if the State has elected to 4 apply this section to the State child health 5 plan under title XXI, on or after the date 6 this section first applies to the State, to 7 each State child health plan for which pay- 8 ment was made under such State child 9 health plan for such period)’ were inserted 10 after ‘such period’; 11 ‘‘(v) subsection (b)(1)(B) shall be ap- 12 plied as if ‘(or a reduction in the amount 13 expended under the State child health plan 14 in the quarter for child health assistance 15 or pregnancy-related assistance for pur- 16 poses of section 2105 if the State has 17 elected to apply this section to the State 18 child health plan under title XXI)’ were in- 19 serted after ‘1903(a)(1)’; and 20 ‘‘(vi) paragraphs (2)(A)(i) and 21 (3)(A)(ii) of subsection (c) shall each be 22 applied as if ‘(or, if the State has elected 23 to apply this section to the State child 24 health plan under title XXI, on or after 25 VerDate Sep 11 2014 00:36 Oct 30, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8546.IH H8546 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8546 IH the date this section first applies to the 1 State)’ were inserted after ‘December 31, 2 1990’ each place it appears.’’. 3 (b) CONFORMING AMENDMENTS.— 4 (1) Section 2107(e)(1) of the Social Security 5 Act (42 U.S.C. 1397gg(e)(1)) is amended— 6 (A) by redesignating subparagraphs (D) 7 through (S) as subparagraphs (E) through (T), 8 respectively; and 9 (B) by inserting after subparagraph (C) 10 the following new subparagraph: 11 ‘‘(D) Section 1902(a)(54) (relating to com- 12 pliance with the requirements of section 1927 13 but only if the State has elected to apply such 14 requirements to the State child health plan 15 under this title).’’. 16 (2) Section 2110(a)(6) of the Social Security 17 Act (42 U.S.C. 1397jj(a)(6)) is amended by insert- 18 ing ‘‘and, if the State has elected to apply the re- 19 quirements of section 1927 to the State child health 20 plan under this title, covered outpatient drugs, as 21 defined in section 1927(k)(2),’’ after ‘‘Prescription 22 drugs and biologicals’’. 23 Æ VerDate Sep 11 2014 00:36 Oct 30, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H8546.IH H8546 pbinns on DSKJLVW7X2PROD with BILLS